PHILLIP BENNETT, the former chief executive of Refco accused of fraud, faces jail today after failing to find enough people willing to sign a financial guarantee for his $50 million (£28 million) bail payment, The Times has learnt.

Mr Bennett, who was arrested on October 11 for securities fraud after the discovery of $430 million of hidden debts on the balance sheet, was ordered to make a $5 million cash payment and come up with six benefactors willing to guarantee a further $50 million of bail.

But after Mr Bennett objected to the terms of his proposed bail American magistrate Douglas Eaton last Friday agreed that the former Refco chief could present a detailed account of his personal finances to the court so that a new bail condition could be set.

Judge Eaton ruled that Mr Bennett should present his personal finances to the court today if he was still unable to come up with six people to guarantee his bail. As of last night, sources close to the investigation told The Times, Mr Bennett had only managed to get the signatures of his wife and son. Depending on his view of Mr Bennett’s finances the judge could order him to be remanded in custody, or set a new bail condition. The failure to find enough people to guarantee a loan of $50 million is in stark contrast to Mr Bennett’s reputation of just three weeks ago when he was able to summon a loan of $424 million from an Austrian bank. He used the loan to pay off the hidden debts in Refco’s accounts, and Bawag bank, the issuer of the loan, is now suing him.

Mr Bennett was supposed to be indicted yesterday morning on charges of securities fraud but the US Attorney for the Southern District of New York postponed the hearing until November 10. No official reason was given but sources close to the investigation said that “material new evidence” had come to light.

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